Capitaland Integrated Commercial Trust · SGX:C38U
Capitaland Integrated Commercial Trust — Q1 2021 Earnings Presentation
56 slides from Capitaland Integrated Commercial Trust's earnings presentation, Apr 26, 2021
Slide 1: CapitaLand Integrated Commercial Trust 1Q 2021 Business Update
CAPITALAND INTEGRATED COMMERCIAL TRUST 1Q 2021 Business Update 26 April 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors incl
Slide 3: Contents
Contents Slide No. 1. Highlights 04 2. Financial Performance 09 3. Portfolio Performance 13 4. Information by Asset Type 17 5. Creating Value 32 6. Summary 41 7. Market Information 43 * Any discrepancies in the tables and charts between the listed figures and totals thereof are due to rounding. 3
Slide 4: Highlights
Highlights Plaza Singapura
Slide 5: 1Q 2021 financial performance
1Q 2021 financial performance Gross Revenue Net Property Income S$334.8 million S$247.1 million ▲63.9% Y-o-Y ▲66.6% Y-o-Y Retail Asset Performance Office Asset Performance (1) Integrated Development (S$ m) (S$ m) Performance (2) (S$ m) 153.5 142.2 110.2 96.5 101.2 96.1 74.0 71.9 50.8 38.1 Gross Reve
Slide 6: Key operating metrics for 1Q 2021
Key operating metrics for 1Q 2021 Proactive leasing strategy remains a priority while striking a right balance between occupancy and rents Portfolio Portfolio Weighted Average Lease Committed Occupancy Expiry by Gross Rental Income (as at 31 March 2021) 95.9% (as at 31 March 2021) 3.1 years (1) Reta
Slide 7: Key financial indicators
Key financial indicators As at As at 31 March 2021 31 December 2020 Unencumbered Assets as % of Total Assets 95.8% 95.8% Aggregate Leverage(1) 40.8% 40.6% Net Debt / EBITDA(2) N.M. N.M. Interest Coverage(3) 3.7x 3.8x Average Term to Maturity (years) 4.4 4.1 Average Cost of Debt(4) 2.4% 2.8% CICT’s I
Slide 8: CICT debt maturity profile as at 31 March 2021
CICT debt maturity profile as at 31 March 2021 Average term to maturity extended to 4.4 years S$ million Issued two long tenor notes with lower interest rates 1,800 17% through its unsecured S$7.0 billion Multicurrency Medium Refinancing completed 17% in 1Q 2021 Term Note Programme (MTN Programme) i
Slide 9: Financial Performance
Financial Performance Capital Tower
Slide 10: 1Q 2021 gross revenue
1Q 2021 gross revenue(1) DORSCON level was raised to Orange on 7 February 2020; travel restrictions and safe distancing measures were imposed and still in force as at 31 Mar 2021 (S$ m) 54.1 47.7 26.5 24.4 22.722.2 22.5 21.6 20.4 19.7 21.1 20.3 18.8 17.6 15.8 15.7 17.6 15.4 14.2 13.7 14.7 12.7 12.4
Slide 11: 1Q 2021 operating expenses
1Q 2021 operating expenses(1) (S$ m) 11.7 (4) 7.4 6.3 6.3 5.5 5.7 5.3 5.2 5.5 5.4 5.3 5.1 4.7 4.9 4.5 4.6 4.2 4.3 4.0 4.0 3.8 3.7 3.6 3.3 3.2 3.0 3.3 3.1 2.7 2.8 2.4 2.4 2.1 1.2 0.6 Raffles City Singapore(3) Other Assets(2) Funan Gallileo CapitaGreen Six Battery Road Asia Square Tower 2 Capital Towe
Slide 12: 1Q 2021 net property income
1Q 2021 net property income(1) 46.7 (S$ m) 36.0 20.8 19.8 16.4 15.9 17.0 16.2 15.114.5 15.6 15.0 13.7 12.7 11.6 11.0 13.3 11.410.9 10.510.1 9.5 8.7 10.4 8.2 8.4 7.1 6.9 6.3 5.9 5.7 6.0 4.3 1.1 -0.6 Raffles City Singapore(3) 21 Collyer Quay(4) Other Assets(2) Asia Square Tower 2 Funan Gallileo Capita
Slide 13: Portfolio Performance
Portfolio Performance Plaza Singapura
Slide 14: Key market updates
Key market updates Gradual easing of safe management measures positive for both retail and office segments COVID-19 • Phase 3 reopening on 28 December 2020: Situation in ― Capacity limits in malls and large standalone stores increased from 10m2 to 8m2 Singapore per person; and ― Group size for gathe
Slide 15: Portfolio lease expiry profile as at March 2021
Portfolio Portfolio lease expiry profile(1)(2) as at 31 March 2021 Portfolio Weighted Average Lease Expiry by Monthly Gross Rental Income 3.1 Years 20.5% 13.4% 12.4% 9.8% 8.5% 6.3% 7.0% 6.3% 5.2% 4.6% 1.8% 2.4% 1.8% 2021 2022 2023 2024 2025 2026 and beyond Retail Office Hospitality Notes: (1) Exclud
Slide 16: No single tenant contributes more than 5.0% of gross rental income
Portfolio No single tenant contributes more than 5.0% of CICT’s total gross rental income(1) % of Total Ranking Top 10 Tenants for March 2021 Trade Sector Gross Rent 1 RC Hotels (Pte) Ltd 5.0% Hotel Supermarket / Beauty & Health / Services / 2 NTUC Enterprise Co-operative Limited 2.2% Food & Beverag
Slide 17: Information by Asset Type
Information by Asset Type Please note: The retail and office asset information included the respective retail and office components of integrated developments unless stated otherwise, in order to show the operating metrics and trends CapitaGreen
Slide 18: Retail performance overview
Retail Retail performance overview Retail 1Q 2021 New Retail Openings by NLA Occupancy(1) IT & Services, 1.2% 97.1% Telecommunication, Home Furnishing, 1.1% 1.4% Others, as at 31 March 2021 1.4% Shoes & Bags, Beauty & Health, 0.9% 3.3% Education, 6.2% Shopper Tenants’ Sales Traffic Per Square Foot F
Slide 19: Retail committed occupancy at 97.1%
Retail Retail committed occupancy at 97.1%(1) Above Singapore retail occupancy rate of 91.5% for 1Q 2021 based on URA’s island- wide retail space vacancy rate 99.6% 99.9% 100.0% 99.4% 98.7% 98.4% 99.4% 99.9% 99.9% 99.0% 99.3% 98.5% 98.4% 99.2% 100.0% 98.2% 98.9% 97.1% 98.8% 98.7% 98.7% 96.9% 95.5% 9
Slide 20: Retail lease expiry profile
Retail Retail lease expiry profile(1) Weighted Average Lease Expiry by 1.8 Years Monthly Gross Rental Income Monthly Gross Rental Income(2) As at 31 March 2021 Number of Leases S$’000 % of Total 2021 764 13,541 21.8 2022 1,006 22,370 36.1 2023 693 14,587 23.5 2024 325 7,665 12.3 2025 42 1,974 3.2 20
Slide 21: Shopper traffic and tenants' sales on positive trajectory
Retail Shopper traffic and tenants’ sales(1) on positive trajectory Following Phase 3 reopening on 28 Dec 2020, shopper traffic recovery gained momentum while tenants’ sales rebounded in 1Q 2021 Year-on-year recovery levels for tenants’ sales and shopper traffic in CICT retail portfolio 102.9% 92.5%
Slide 22: Most trade categories saw Y-o-Y improvement
Retail Most trade categories saw Y-o-Y improvement in 1Q 2021 Top five trade categories(1) 1Q 2021 tenants’ sales $ psf/month(2) 0.7% Y-o-Y (by gross rental income for retail segment) : Percentage of total retail gross rental income(3) > 69% 47.5% 1Q 2021 Tenants’ Sales by Trade Categories Y-o-Y Var
Slide 23: Office performance overview
Office Office performance overview Singapore and Germany office assets Increase in leasing enquiries for expansion and new set-up space Office Total New and Renewal Leases Q-o-Q(4) Occupancy(1) (sq ft) 10% 2% 94.9% 291,800 8% 42% as at 31 March 2021 1Q 2021 7% (New leases: 5.3%(2)) 23% 46% Singapore
Slide 24: Occupancy rate of office portfolio at 94.9%
Office Occupancy rate of office portfolio at 94.9% Occupancy for Singapore: Occupancy for Germany: CICT’s office portfolio: 94.8% CICT’s portfolio: 95.4% Core CBD: 93.9% Frankfurt Market: 93.6%(3) 96.9% 97.4% 100.0% 96.8% 100.0% 100.0% 100.0% 97.9% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 96.4% 95.
Slide 25: Office rents committed above market levels
Office Office rents committed above market levels Market Rents of Average Committed Comparative Sub-Market (S$) Building Expired Rents Rents in 1Q 2021 Sub-Market (S$) (S$) Cushman & Knight Frank(2) Wakefield(1) Grade A CapitaGreen 10.85 10.35 – 11.25 9.58 9.10 – 9.60 Raffles Place Grade A Six Batte
Slide 26: Proactively engaged with tenants to manage their requirements
Office Proactively engaged with tenants to manage their requirements Weighted Average Lease to Expiry 3.0 Years By Monthly Gross Rental Income Total Office Portfolio(1) Lease Expiry Profile as at 31 March 2021 25.4% 26.2% 25.3% 22.0% 11.7% 10.0% 16.4% 16.1% 13.6% 11.5% 16.3% (2) 6.3% 7.0% 13.9% 2021
Slide 27: Addressing tenant space and leasing requirements with flexibility
Office Addressing tenant space and leasing requirements with flexibility and optionality 1Q 2021 Grade A office market rent at S$10.40 psf per month (1) 2021 Average rent of leases expiring is S$10.41 psf (2) Period 1H 2021 2H 2021 20% 16 Rental Rental % of % of Rates of Rates of 11.60 Building Expi
Slide 28: Continue to proactively manage major leases
Office Continue to proactively manage major leases 2022 2023 (1) (1) Average rent of leases expiring is S$9.22 psf Average rent of leases expiring is S$11.00 psf 20% 16 20% 16 12.19 11.88 15% 11.00 11.32 12 15% 11.06 12 10.75 8.56 10% 8 10% 8 6.18 4.8% 4.5% 5% 4 5% 4.2% 4 3.2% 3.4% 3.5% 2.0% 0.2% 0%
Slide 29: Occupancy rate of Integrated Developments at 96.5%
Integrated Development Occupancy rate of Integrated Developments at 96.5% 99.3% 99.0% 99.3% 98.5% 95.6% 92.8% Raffles City Singapore (1) Funan (2) Plaza Singapura & The Atrium@Orchard (3) As at 31 March 2020 As at 31 March 2021 Notes: (1) Retail occupancy is 90.9% and office occupancy is 94.9% as at
Slide 30: Lease expiry profile as at March 2021
Integrated Development Lease expiry profile(1) as at 31 March 2021 Weighted Average Lease Expiry 5.0 Years by Monthly Gross Rental Income 23.9% 16.7% 15.5% 10.5% 8.9% 5.7% 5.0% 3.6% 4.3% 3.2% 0.8% 1.5% 0.4% 2021 2022 2023 2024 2025 2026 and beyond Retail Office Hospitality Note: (1) Excludes gross t
Slide 31: Restructuring of RC Hotel lease
Integrated Development Restructuring of RC Hotel lease RC Hotel contributed 5.0% to CICT’s total gross rental income for March 2021 ► Effective 1 January 2021 ► No change to rent components: minimum rent, service charge and variable rent ► Lease extended by additional five years from 2036 to 2041 ►
Slide 32: Creating Value
Creating Value Westgate
Slide 33: CapitaSpring on track to complete in 2H 2021
CapitaSpring on track to complete in 2H 2021; 50% of total NLA inked as at 15 Apr 2021 • Achieved a committed occupancy of 50% as at 15 April 2021, with another 15% under advance negotiation Leasing Breakdown by Sectors based on committed NLA Legal, 2% Real Estate and Property Services, 14% Financia
Slide 34: CapitaSpring - Development for future growth
CapitaSpring- Development for future growth CapitaSpring has drawn down S$46.0 mil in 1Q 2021 – CICT’s 45.0% share amounts to S$20.7 mil CICT’s 45% interest in Drawdown (2) CICT’s 45% interest Glory Office Trust and as at Mar 2021 Balance Glory SR Trust Debt at Glory Office Trust and Glory SR S$531.
Slide 35: Ongoing asset enhancements to complete in 2021
Ongoing asset enhancements to complete in 2021 SIX BATTERY ROAD 21 COLLYER QUAY LOT ONE SHOPPERS’ MALL Artist’s impression: New 24/7 through-block link Artist’s impression: new lift lobby facade Artist’s impression: Expansion of library ✓ Revised target completion end-2021 ✓ 7-year lease to WeWork:
Slide 36: Refreshing shopper experience at Raffles City Singapore
Refreshing shopper experience at Raffles City Singapore Level 1: New 24-hour café Level 1 and 2: New concept store Level 2: New fashion store The Coffee Bean and Tea Leaf ONE ASSEMBLY - Collaboration between BHG and Raffles City Singapore PALEM Basement 1: New F&B offerings Level 3: Online to offlin
Slide 37: Curating new retail experiences in 1Q 2021
Curating new retail experiences in 1Q 2021 Best Denki at Plaza Singapura Fluff Stack at Westgate Typhoon Café at Bugis+ Café Aux Bacchanales at Plaza Singapura KOMME at Plaza Singapura Levi's® Outlet at IMM Building 37
Slide 38: Plan to align Clarke Quay's mall positioning
Plan to align Clarke Quay's mall positioning with upcoming changes in the vicinity ► Ongoing redevelopment of old Liang Court adjacent to Clarke Quay will have higher residential component ► Clarke Quay tenants more affected by government- stipulated restrictions on trading hours and sales of alcoho
Slide 39: Engaging our mall & workplace community
Engaging our mall & workplace community Promote CapitaStar loyalty Draw online shoppers to a Sustainability programme to spur use of platform different offline experience at and spending at our malls our malls Earth Hour 2021 Spring to Joy AR Virtual Lion Dance Explore the City In conjunction with E
Slide 40: A New CapitaStar Experience
Future-proofing our retail ecosystem via CapitaStar’s platform More than Monthly App Traffic 1.1 Million 5.4 Million You can now offset your A NEW CapitaStar Members In December 2020 shopping and dining with eCapitaVouchers CAPITASTAR and STAR$ EXPERIENCE Total number of eDeals Redeemed in 2020 Key
Slide 41: Summary
Summary Raffles City Singapore
Slide 42: Roadmap supported by economic recovery in 2021
Roadmap supported by economic recovery in 2021 Immediate to medium-long term plan: • Complete ongoing AEIs in 2021 • Complete CapitaSpring redevelopment in 2021 • Proactive leasing and tenant mix repositioning Enhancing Portfolio • Portfolio reconstitution and capital recycling Quality • Seek accret
Slide 43: Market Information
Market Information Six Battery Road
Slide 44: CICT Market Share
Retail CICT Market Share Largest owner of private retail stock in Singapore(1) CICT, 9.2% Frasers Centrepoint Trust, 4.4% Mercatus, 4.3% Far East Organization, 3.3% Lendlease, 3.0% Mapletree Commercial Trust, 2.4% City Developments Limited, 2.2% Others/Unknown, 65.3% Changi Airport Group, 2.0% Unite
Slide 45: Limited retail supply between 2021 and 2023
Retail Limited retail supply between 2021 and 2023 • Total retail supply in Singapore averages approximately 0.3 million sq ft (2021 - 2023), significantly lower than: ― Last 3-year historical annual average supply (2018 - 2020) of 0.86 million sq ft ― Last 5-year historical annual average supply (2
Slide 46: Known future retail supply in Singapore (2021 – 2023)
Retail Known future retail supply in Singapore (2021 – 2023) Only two projects with more than 100,000 sq ft NLA located in the suburban area Expected Proposed Retail Projects Location NLA (sq ft) completion 2021 Grantral Mall @ Macpherson (Citimac A&A) Macpherson Road 67,500 2021 Shaw Plaza Balestie
Slide 47: Slight Q-o-Q drop in Orchard rents while Suburban rents remain stable
Retail Slight Q-o-Q drop in Orchard rents while Suburban rents remain stable in 1Q 2021 Singapore Retail Rents and Quarterly GDP Growth 15.0% $40.00 $35.00 10.0% $30.00 5.0% $25.00 0.0% $20.00 Q1 2021(1) $15.00 Q1 2011 Q4 2013 Q4 2016 Q3 2019 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q2 2011 Q3 2011 Q4 2011 Q
Slide 48: Singapore retail sales performance
Retail Singapore retail sales performance Retail sales recorded first positive growth following 12 consecutive months of contraction while online sales proportion remain in low teens for February 2021 (S$ billion) 4.0 30.0% 3.5 3.6 3.5 26.2% 3.2 25.0% 3.1 3.0 2.9 2.8 2.8 2.8 2.8 21.0% 2.7 2.6 20.0%
Slide 49: Singapore office stock as at end-2020
Office - Singapore Singapore office stock as at end-2020 Island-wide office stock Singapore Stock % of Grade A office (sq ft) total Core CBD Decentralised, Core CBD, stock 23.23% 50.68% Core CBD 31.2 mil 50.68% 14.1 mil sq ft (45.28% of Core CBD stock) Fringe CBD 16.1 mil 26.10% Decentralised 14.3 m
Slide 50: Annual new supply averages 0.7 mil sq ft over 5 years
Office - Singapore Annual new supply averages 0.7 mil sq ft over 5 years; CBD Core occupancy at 93.9% as at end-March 2021 Singapore Private Office Space (Central Area)(1) – Net Demand & Supply 2.5 Forecast average annual gross new supply 2.2 (2021 to 2025): 0.7 mil sq ft 1.9 2.0 1.8 1.9 1.7 Include
Slide 51: Known future office supply in Central Area (2021 – 2024)
Office - Singapore Known future office supply in Central Area (2021 – 2024) No commercial sites on Government Land Sales Confirmed List (24 Jun 2020); Three white sites (1) on reserve list, namely Marina View (Central Area), Kampong Bugis and Woodlands Ave 2 (Fringe Area) Expected Proposed Office Pr
Slide 52: Grade A office market stable Q-o-Q
Office - Singapore Grade A office market stable Q-o-Q 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Mthly rent (S$ / sq ft ) 11.15 11.30 11.45 11.55 11.50 11.15 10.70 10.40 10.40 % change 3.2% 1.3% 1.3% 0.9% -0.4% -3.0% -4.0% -2.8% 0% $20 S$18.80 $18 Monthly gross rent by per square foot $16
Slide 53: Information on Frankfurt and two submarkets
Office - Germany Information on Frankfurt and two submarkets ('000 sqm) Frankfurt Office (%) 800.0 16.0 700.0 14.0 600.0 12.0 500.0 10.0 400.0 8.0 300.0 6.4 6.0 200.0 4.0 100.0 2.0 0.0 0.0 2015 2016 2017 2018 2019 2020 Demand ('000 sqm) New Supply ('000 sqm) Vacancy rate (%) (‘000 sqm) Banking Distr
Slide 54: New office supply in Frankfurt
Office - Germany New office supply in Frankfurt About 68% and 35% of 2021F and 2022F new supply are owner-occupied or committed (‘000 sq m) 300 Actual New Supply Forecast New Supply 250 200 5-Year (2016-2020) Average: 145,960 sq m 150 100 50 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F
Slide 55: Rental range in Frankfurt
Office - Germany Rental range in Frankfurt Rental range by submarket Frankfurt West City CBD (€ / square metre / month) C Westend B 44.0 44.0 D Gallileo 27.0 40.4 Banking District 23.1 21.7 A5 B43 Niederrad South 18.0 19.0 7.0 MAC A3 Frankfurt Frankfurt Airport Office Frankfurt Total Banking Distric
Slide 56: Thank you
Thank you For enquiries, please contact: Ms Ho Mei Peng, Head, Investor Relations Direct: (65) 6713 3668 | Email: ho.meipeng@capitaland.com CapitaLand Integrated Commercial Trust Management Limited (http://www.cict.com.sg) 168 Robinson Road, #25-00 Capital Tower, Singapore 068912 Tel: (65) 6713 2888
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